Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railroad operator Kansas City Southern (NYSE: KSU ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Kansas City Southern's business and see what CAPS investors are saying about the stock right now.
Kansas City Southern facts
| Headquarters (Founded) | Kansas City, Mo. (1962) |
| Market Cap | $5.3 billion |
| Industry | Railroads |
| Trailing-12-Month Revenue | $1.94 billion |
| Management | CEO David Starling (since 2010) CFO Michael Upchurch (since 2008) |
| Return on Equity (Average, Past 3 Years) | 6.3% |
| Cash/Debt | $156 million / $1.6 billion |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 416 members who have rated Kansas City Southern believe the stock will outperform the S&P 500 going forward. These bulls include robertshrestha and NHWeston.
Just yesterday , robertshrestha listed several of Kansas City Southern's positives: "Developing great intermodal business, tremendous assets make for decent buyout candidate, high rates from Mexican market. What's not to like?!"
Over the next five years, in fact, Kansas City Southern is expected to grow its bottom line at a brisk rate of 25% annually. That's much faster than other railroad operators like Canadian National Railway (NYSE: CNI ) (16.2%), Union Pacific (NYSE: UNP ) (16.5%), and CSX (NYSE: CSX ) (15.7 %).
CAPS member NHWeston expands on the outperform argument:
Railroads are coming back steadily, and KSU is especially well positioned for a relatively smaller player. They move many farm and fuel commodities and, if we assume manufacturing in the Mid-West revives will benefit enormously. They also tie into construction, especially lumber and cement. KSU also extends into Mexico, a very unappreciated market. Management is excellent, tight with a buck, and exploring alternative energies. Finally, KSU is a first-rate buy-out candidate or junior partner in a merger. Buy some.
What do you think about Kansas City Southern, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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